According to press reports, banks and mobile network service providers can use Aadhaar for KYC (know your customer) tasks. Aadhaar’s Know Your Customer (KYC) capability combined with biometric authentication can reduce the change for fraudsters to commit fraud via the theft of personal data or the setting up of fake accounts.
Still, the cabinet’s ruling allows customers to opt out of the Aadhaar biometric system for KYC purposes, but not until they reach the age of 18. According to the India-based Economic Times, the cabinet’s decision “provides for stiff penalties for violation of norms set for the use of Aadhaar and violation of privacy. It bans storing of core biometric information as well as Aadhaar number by service providers in cases of individuals who have voluntarily offered the national ID as a means of authentication.”
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